According to Lending Club president and new acting CEO Scott Sanborn, the first rule of Lending Club is to “maintain the highest levels of trust with borrowers.”
Sanborn’s remarks come as the online lending marketplace announces both its Q1 results as well as the resignation of Renaud Laplanche as Chairman and CEO. Laplanche is stepping down in the wake of an internal review by the company’s board of directors that questioned a $22 million sale of near-prime loans to a single investor. Sanborn (pictured below) will be assisted by director Hans Morris, who will also serve in a newly created role of executive chairman.
Morris emphasized that while the “lack of full disclosure” during the review process was “unacceptable,” he added that the sum involved was “minor” and would have no financial impact on the company. Lending Club’s Q1 results underscored this, with the company reporting year-over-year operating revenue gains of 87% and an increase of more than 137% in year-over-year, adjusted EBITDA.
Other positive metrics from Lending Club for the quarter include a servicing portfolio of more than $10 billion, a gain of more than $5 billion year-over-year, and scoring its first month with more than $1 billion of originations. This included two days “at or above $99 million.” Speaking of the quarter, Lending Club CFO, Carrie Dolan said that flexibility of the model was key in helping the company “respond to market challenges such as economic uncertainty, capital market disruptions and negative seasonality.” She added, “We were pleased with the company’s growth in the face of these challenges.”
Headquartered in Sunnyvale, California, and founded in 2006, Lending Club is one of Finovate’s oldest alums, having demonstrated its platform at the first Finovate conference in 2007.